If I knew I was going to move from the next house I buy within a year or two, I'd strongly consider renting it. And if the rental was furnished in a way I could live with, all the better; I'd put my own stuff in storage and pay for the storage fees from what I save (temporarily) in long-distance moving costs.
But most baby boomers relocating to the South are in it for the long haul, and so the question is whether renting a house for the long term make sense. There are a few reasons why it may not.
➢ Addition by Deduction. Over time, the tax deductions you receive from owning, especially if you have a mortgage, enhance the benefits of owning compared with renting, which offers no such benefit (count on your "landlord" building his tax burden into your rental fee). Even if you don't finance your home, you still get a rebate in the form of a tax deduction on local property taxes. (And if you use your home only a few weeks per year, and rent it out to others, the depreciation helps save additional dollars.)
➢ Forced Savings. Most folks are going to pay for their home before they think about buying a new pair of shoes or going on vacation. And, notwithstanding that awful five-year period that started in 2008, homes appreciate over time, and when you sell in 10 years the one you buy next month, you are going to make money. And you will have had the use of a beautiful home for a decade. Sweet.
